Last
evening we discussed ways to reduce debt using the Snowball method or the
Avalanche method. Review your payment obligations and write about 1 – 3 bills
that you plan to immediately reduce and the method you plan to use
to do so.
After completing my budget and reviewing my payment obligations, I decided that the only way to get out of debt was by applying the snowball method. I started putting more money into the credit card with the lowest balance and paying minimum on the rest of the credit cards. I then realized that this was going to take me longer than 12 month which is my goal. So, I included the Avalanche method where I will double the minimum payment on the second card with the lowest balance and still continue to pay the minimum on the rest of the cards. So far I have paid off one card and two payments away from paying off my second one. With continuous discipline and committed I should be able to pay off all my credit cards within the next 12 months. This methods are actually helping me to reach my goal sooner than previously planned.
I now keep all my receipts and write down everything I spend money on. And by doing this it has taught me to be more mindful of my spending.I too am doing the snowball affect on my debt. I am paying off the full balance of my credit cards each month. And the one that has a high balance. I am paying two payments a month. And the one with the highest interest. Those are the ones. I am focusing on the most. I also realize that just because my credit union offer easy to obtain loans.I will not apply for one. Unless it is something that I need and not just to buy Christmas gifts.because it will take you until summer before you pay them off. I am so thankful for everything I am learning in this class. I Wish I had this knowledge years earlier. But I am learning. It is never too late.
My credit card bill is what I plan on avalanching in order to get back on track with my other payments. I have student loans and car loans, that applying the snowball method will be reliable. Once I pay off my credit card I can focus more on one of the loans.
That's awesome news Sarah. You will see a big difference as time goes by. It will be great experience that you will continue to apply for more years to come.
Hi Sierra I too have student loans and car payments but believe me is possible. This two techniques are awesome and I've tried many ways to get rid of my debts and nothing seem to work except for this. We're going to get there we're going to succeed stay focused and just remember one debt at a time.
What everyone is doing is great, I also tried different way of getting out of debt. sometime you have to slow down one step at a time. I was doing to much and all over the place. My biggest problem is credit cards, I am taking the smallest giving myself 4 months one card at a time. I am the great Procrastinator
Hi Shirley, do what you can at a pace that works for you. One card at a time, one step at a time. Small progress is better than no progress. Good Luck!
My 3 biggest loans are 2 credit cards and my student loan. I plan on utilizing the avalanche method and getting those payments done by December 1 of this year! I know it will take a lot of sacrificing, but it will happen! And my student loans, I will seek out the loan forgiveness program and also have that done by end of 2018. I hope by 2019 January, I will have all debt under control where I can save significantly.
I am currently utilizing the avalanche technique. I have student loans and a car loan. Within my student loan i have about 5 loans. I pay the minimum required on that as a whole. But I did choose to pay most of my bill off for one of the loans that had the highest interest rate. That loan amount grew to about $5000+ and I paid off $3000 using a 0% interest credit card for 15 months. If I pay $200 for 15 months, I pay off the $3000 I borrowed to pay that debt.
My school loans and my car loans, are my biggest concerns. I also started applying more money to my loan with the biggest interest, and I have seen the difference.
Hi Shenice it seems like student loans are a debt we all have, I will grateful for the day that I am debt free. That is great that you were able to pay off the loans with the highest interest with a credit card that has 0% interest. That was very smart of you, keep up the great work.
Majority of my debut is from student loans and three person loans. My student loans are currently in forbanerce but I know in the near future that I will need to pay towards the balance. My plan is to pay the minimum amount towards my student loans until they are paid off. Regarding my three personal loans, the loan with the lowest balance will be paid off by the end of December. After that I will be able to take the amount I was paying towards that loan and apply it toward the two remaining loans. With this plan I will have my loans paid off before the end of my loan. I have also reviewed the terms to my loan agreement and there aren't any penalties for paying balance off before the end of the term. I decided that I will take this to the next step once my loans are completely paid off, I am going to continue having the funds deducted from my direct deposit and transferred to my loan account. Within a year I will have almost $4000 saved and I can use half to stat my Roth IRA account. My plan consists of the snowball and avalanche method.
Most of my debt is student loan debt as well. I have a credit card bill, 2 utility bills and a medical bill that I would like to pay using the snowball method. However, it will take me longer than I anticipate because I am not getting full time hours on my job and I have less money than I normally do so I am behind in my bills playing catch up. It sucks because I can't payoff unless I am making enough money to do so.
Hi Lisa utility bills have good programs like the matching pay and new start as long as you pay on time it helps to lower your past due balance as well. So your paying your bill and paying down your past due bill.
The bills I need to immediately reduce is my credit card bill from JcPenny, Bank of America, and my student loans the method I plan on taking to help with this is to start a payment plan that i can afford for all.
So I think dueto myb employment status the snowball method is whats best for me know. I just took on another student loan even though I was almost done paying off my first one. ive been managing my bills and paying on time I pay more than the minimun to try to bring it down a little faster
After completing my budget and reviewing my payment obligations, I decided that the only way to get out of debt was by applying the snowball method. I started putting more money into the credit card with the lowest balance and paying minimum on the rest of the credit cards. I then realized that this was going to take me longer than 12 month which is my goal. So, I included the Avalanche method where I will double the minimum payment on the second card with the lowest balance and still continue to pay the minimum on the rest of the cards. So far I have paid off one card and two payments away from paying off my second one. With continuous discipline and committed I should be able to pay off all my credit cards within the next 12 months. This methods are actually helping me to reach my goal sooner than previously planned.
ReplyDeleteCongratulations Laura! It is great that you are making change in your life that has directly impacted your budgeting and paying off debt.
DeleteCongratulations Laura! Its a pleasure to see that you are applying everything that you are learning in class to your life.
DeleteThat is fantastic, Laura! Congratulations!
DeleteThat is excellent planning Laura.
DeleteI now keep all my receipts and write down everything I spend money on. And by doing this it has taught me to be more mindful of my spending.I too am doing the snowball affect on my debt. I am paying off the full balance of my credit cards each month. And the one that has a high balance. I am paying two payments a month. And the one with the highest interest. Those are the ones. I am focusing on the most. I also realize that just because my credit union offer easy to obtain loans.I will not apply for one. Unless it is something that I need and not just to buy Christmas gifts.because it will take you until summer before you pay them off. I am so thankful for everything I am learning in this class. I Wish I had this knowledge years earlier. But I am learning. It is never too late.
DeleteYes Laura. That's awesome. I am learning so much from this class. It is great.
DeleteLaura that is great! Keep up the good work...
DeleteMy credit card bill is what I plan on avalanching in order to get back on track with my other payments. I have student loans and car loans, that applying the snowball method will be reliable. Once I pay off my credit card I can focus more on one of the loans.
ReplyDeleteThat's awesome news Sarah. You will see a big difference as time goes by. It will be great experience that you will continue to apply for more years to come.
DeleteThat's fabulous! It will happen!
DeleteHi Sierra I too have student loans and car payments but believe me is possible. This two techniques are awesome and I've tried many ways to get rid of my debts and nothing seem to work except for this. We're going to get there we're going to succeed stay focused and just remember one debt at a time.
DeleteWhat everyone is doing is great, I also tried different way of getting out of debt. sometime you have to slow down one step at a time. I was doing to much and all over the place. My biggest problem is credit cards, I am taking the smallest giving myself 4 months one card at a time. I am the great Procrastinator
DeleteHi Shirley, do what you can at a pace that works for you. One card at a time, one step at a time. Small progress is better than no progress. Good Luck!
DeleteSounds like your ready and you have your plan just remember to pay the credit card bills too because then thats another hassle.
DeleteMy 3 biggest loans are 2 credit cards and my student loan. I plan on utilizing the avalanche method and getting those payments done by December 1 of this year! I know it will take a lot of sacrificing, but it will happen! And my student loans, I will seek out the loan forgiveness program and also have that done by end of 2018. I hope by 2019 January, I will have all debt under control where I can save significantly.
ReplyDeleteThat's amazing you can see the light at the end of the tunnel. Stay disciplined. it will be possible.
DeleteI am currently utilizing the avalanche technique. I have student loans and a car loan. Within my student loan i have about 5 loans. I pay the minimum required on that as a whole. But I did choose to pay most of my bill off for one of the loans that had the highest interest rate. That loan amount grew to about $5000+ and I paid off $3000 using a 0% interest credit card for 15 months. If I pay $200 for 15 months, I pay off the $3000 I borrowed to pay that debt.
ReplyDeleteMy school loans and my car loans, are my biggest concerns. I also started applying more money to my loan with the biggest interest, and I have seen the difference.
DeleteHi Shenice it seems like student loans are a debt we all have, I will grateful for the day that I am debt free. That is great that you were able to pay off the loans with the highest interest with a credit card that has 0% interest. That was very smart of you, keep up the great work.
DeleteMajority of my debut is from student loans and three person loans. My student loans are currently in forbanerce but I know in the near future that I will need to pay towards the balance. My plan is to pay the minimum amount towards my student loans until they are paid off. Regarding my three personal loans, the loan with the lowest balance will be paid off by the end of December. After that I will be able to take the amount I was paying towards that loan and apply it toward the two remaining loans. With this plan I will have my loans paid off before the end of my loan. I have also reviewed the terms to my loan agreement and there aren't any penalties for paying balance off before the end of the term. I decided that I will take this to the next step once my loans are completely paid off, I am going to continue having the funds deducted from my direct deposit and transferred to my loan account. Within a year I will have almost $4000 saved and I can use half to stat my Roth IRA account. My plan consists of the snowball and avalanche method.
ReplyDeleteThat snowball method is helping a lot I might have to look into that also i think this was the class i missed smh.
DeleteMost of my debt is student loan debt as well. I have a credit card bill, 2 utility bills and a medical bill that I would like to pay using the snowball method. However, it will take me longer than I anticipate because I am not getting full time hours on my job and I have less money than I normally do so I am behind in my bills playing catch up. It sucks because I can't payoff unless I am making enough money to do so.
ReplyDeleteHi Lisa utility bills have good programs like the matching pay and new start as long as you pay on time it helps to lower your past due balance as well. So your paying your bill and paying down your past due bill.
DeleteThe bills I need to immediately reduce is my credit card bill from JcPenny, Bank of America, and my student loans the method I plan on taking to help with this is to start a payment plan that i can afford for all.
ReplyDeleteSo I think dueto myb employment status the snowball method is whats best for me know. I just took on another student loan even though I was almost done paying off my first one. ive been managing my bills and paying on time I pay more than the minimun to try to bring it down a little faster
ReplyDelete